Latest news with #NeilBeveridge
Yahoo
20-05-2025
- Automotive
- Yahoo
Chinese battery firm CATL raises $4.6bn in Hong Kong IPO
Contemporary Amperex Technology (CATL) experienced an 18% rise in its Hong Kong trading debut after raising HK$35.7bn ($4.6bn) in an initial public offering (IPO). This increase reflects investor confidence in CATL's potential to capitalise on the electronic vehicle boom. The shares were traded at HK$308, up from the initial public offering price of HK$263. CATL's IPO is reported to be the largest listing made in 2025 globally. On the Shenzhen stock exchange, CATL shares initially opened lower but reversed course to rise 1.5% to 264 Chinese yuan. Bernstein senior research analyst Neil Beveridge told CNBC's The China Connection that: 'I think that as the H [Hong Kong] shares continue to perform strongly, that will pull up the A [mainland China] shares. 'For the H shares to be trading above the A shares just shows how exceptional the demand is for this company, particularly from global investors.' The company plans to allocate 90% of the funds raised to building a new factory in Hungary. The Hungarian factory will be used to supply batteries to European automotive clients, including Stellantis, BMW, and Volkswagen. CATL also encountered US-China trade tensions, with the Pentagon placing it on a watchlist in January over alleged military links, which CATL denies. Despite a 9.7% drop in 2024 revenue due to competition in China's EV market, CATL's net profit increased by 15% year over year. Demand for EVs in China, a crucial market for CATL, surged last year, driven by subsidies and consumer incentives. EV sales in China reached 11 million in 2024, a 40% increase from the previous year, according to UK research firm Rho Motion. Bank of America, China International Capital Corporation, Goldman Sachs, Morgan Stanley, and JPMorgan Chase were the joint lead managers for the Hong Kong offering. Andy Maynard, managing director and head of equities at China Renaissance, commented on CNBC's Squawk Box Asia that CATL's IPO demonstrates investor interest in China despite trade tensions. In April, CATL introduced new battery products, highlighting its entry into the "multi-power era", marking a significant advancement for the company. "Chinese battery firm CATL raises $4.6bn in Hong Kong IPO" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Mayor
20-05-2025
- Automotive
- Business Mayor
Shares in China's CATL jump over 18% in Hong Kong debut as battery maker rides EV boom
Shares of CATL debut in Hong Kong on May 20, 2025. Sopa Images | Lightrocket | Getty Images Shares of the world's largest battery manufacturer Contemporary Amperex Technology rose over 18% in their Hong Kong trading debut on Tuesday, as investors bet on the company's ability to ride the boom in electronic vehicles. Shares were last trading at 308 Hong Kong dollars apiece on the Hong Kong stock exchange, compared with the initial public offering price of HK$263 dollars per share. CATL IPO raised HK$35.7 billion ($4.6 billion) according to a company filing, reportedly making it the largest global listing in 2025. CATL shares, which had opened lower on mainland China's Shenzhen stock exchange, reversed course to rise 1.5% to 264 Chinese yuan. 'I think that as the H [Hong Kong] shares continue to perform strongly, that will pull up the A [mainland China] shares,' Neil Beveridge, senior research analyst at Bernstein, told CNBC's 'The China Connection.' 'For the H shares to be trading above the A shares just shows how exceptional the demand is for this company, particularly from global investors,' he added. CATL said in its Hong Kong filing that 90% of the funds raised will go toward building its upcoming factory in Hungary, aimed at supplying batteries to European automotive clients including Stellantis , BMW and Volkswagen . 'Europe is an exceptionally important market for CATL,' said Beveridge, adding that the company's growth in China was going to slow over the coming years due to already high sales penetration. 'Europe's only at about 20-25% [sales] penetration, so there's still a lot of growth there to come,' he added. The company's push into Europe coincided with global expansions from leading Chinese EV makers such as BYD. These efforts also come amid increased scrutiny from the U.S. and EU, which placed punitive tariffs on EVs made in China last year, citing unfair trade practices. CATL found itself in the crosshairs of U.S.-China trade earlier this year, with the Pentagon putting it on a watchlist in January over suspected links to China's military — allegations the company has rejected. According to Bill Russo, founder and CEO of investment advisory firm Automobility, the watchlist designation, coupled with Trump's latest tariffs on China, may complicate the company's U.S.-related business. However, the impact on its global ambitions will likely be limited unless broader multilateral restrictions follow, as CATL's core strategy remains focused on markets such as Europe and emerging regions, he said. Weekly analysis and insights from Asia's largest economy in your inbox Subscribe now In March, CATL posted a 9.7% drop in its 2024 annual revenue, hit by intense competition in China's electric-vehicle market that pressured the world's top battery producer. Still, the company's net profit went up by 15% year over year. Demand for electric vehicles in China, a critical market for CATL, gained momentum last year on the back of a combination of subsidies and consumer purchase incentives. EV sales in China surged to 11 million in 2024 — a 40% increase compared to the previous year, data from U.K. research firm Rho Motion showed. 'We're a big believer and investor in CATL in our global EV strategy. It's just phenomenal, it's a 'must own company,' in my opinion, along with BYD for investors in the space,' said Brendan Ahern, chief investment officer at KraneShares. Bank of America, China International Capital Corporation, Goldman Sachs, Morgan Stanely, JPMorgan Chase were the joint lead mangers for the Hong Kong offering. Speaking on CNBC's Squawk Box Asia on Tuesday, Andy Maynard, managing director and head of equities at China Renaissance, said that the CATL's IPO shows that investors still look to China to find quality plays despite recent trade tensions between Beijing and Washington. Correction: This story was revised to accurately reflect the jump in shares at market open.
